China set to go spending

China is set to add an extra $50billion (£31.8 billion) to its sovereign wealth fund as it gears up to make more rapid investments in Western businesses and companies.

The extra cash, according to Reuters, will boost the fund, called China Investment Corporation, to $460 billion making it one of the largest in the world.

German luxury car-maker Daimler - whose marques include Mercedes Benz - is already near the top of the fund's shopping list with CIC keen to buy a 5% to 10% stake. Such an investment has already been welcomed by Daimler chief executive Dieter Zetsche.

CIC said back in March that it had fully invested its existing cash and wanted the Chinese government to give it more. Local reports said it had asked for anything from $100million to $200 million.

Yesterday CIC spent $240 million buying a 25% stake in South African resources group Shanduka. The unlisted company is run by the former prominent African National Congress politician Cyril Ramaphosa. CIC bought the shares mainly from existing shareholders, Old Mutual and Investec.